Going to a car dealership shouldn’t be an intimidating experience. However, some people feel overwhelmed when shopping for new or used cars because they don’t understand all the terms that are thrown around by salesmen, financing companies, and others with more car-buying experience. Here are a few common terms you should know so you can have confidence when buying.

Top 5 Terms to Know Before Buying at a Car Dealership

1. APR

APR, or annual percentage rate, refers to the interest rate that you will pay on your car loan. The number is based on how much money you borrowed to finance your purchase, calculated over a 12-month period.

2. Depreciation

Buyers are sometimes surprised that they don’t get more money for a car trade-in. This is a result of depreciation, or how much market value the car loses as time goes on. Most depreciation occurs during the first few years of ownership.

3. Documentation Fees

There are a lot of documents involved in the sale of a vehicle, and the dealership will usually finalize them with the DMV for you. There is a fee associated with this service, which is usually negotiable.

4. Title

The car title is its official proof of ownership, as issued by the DMV. If you are financing your car, the lender will hold the title until you pay off the loan. Don’t forget about this important document.

5. VIN

VIN stands for vehicle identification number, which is a 17-digit code that identifies the car in question. These codes are typically found along the door jamb and are essential for looking up the vehicle history report.

If you’re looking for an honest, reliable car dealership, visit Discount Auto Sales in Mountain Home, AR. With over 15 years of industry experience, this dealership takes pride in providing open and honest sales to ensure that each driver finds the right vehicle for their needs. To learn more about the car dealerships current inventory, visit them online or call (870) 425-1775.